Bitcoin, Ethereum and Dash are continuing to settle in the wallets of crypto investors and miners for several years in a row. Today, each unit of these cryptocurrencies costs from hundreds of dollars to tens of thousands of dollars.
We asked a consultant of the Dash marketing team about why market participants do not set a goal to turn cryptocurrency into regular money, why the chance to earn on mining has gone a couple of years ago, and why the wait until the moment when crypto becomes «the new iPhone» is not long.
S.: What do you think of Bitcoin and Ethereum?
I.: Personally, I have a cool attitude to the top-10 of all the known cryptocurrencies. And the community probably even hates them.
Everyone, who is interested, knows that Dash was inspired by Bitcoin. We do not even try to hide it. Initially, Duffield (Evan Duffield – the creator of Dash) wanted to improve Bitcoin, but when he could not break through the bureaucracy and incomprehensible decision-making system, he created his own project with a voting system.
S.: What kind of voting system does Dash have?
I .: Once Duffield came up with his proposal for Bitcoin, but it was not clear to him who should make decisions about its implementation, because anarchy and the “principle of consent” reigned inside (when everyone waits until all participants agree with the majority , and only after that something is implemented). To avoid this, Duffield has already implemented a voting system in Dash. As a result, decisions about changes in the network are made by voting only among holders of the Dash cryptocurrency. In order to prevent decisions from hanging unresolved, 10 percent of mining profit goes to a common account, from which money is subsequently allocated for the implementation of the decisions made.
Cryptocurrency and blockchain in simple words
Adding another block with the latest news about transactions is called mining. Essentially, this is the way to make money on the work of the computer, which is processing crypto payments in the system. It is a purely technical need, and there is nothing interesting about it. Everyone has been paying attention to mining only because it became profitable. And everyone became interested in how they could profit from it.
S.: Why do I need this cryptocurrency thing, what is so valuable about it? When ordinary people do not understand, they do not trust …
I.: Yes, this is the key problem of the whole cryptocurrency. And Dash, unfortunately, is no exception here. To start using it, you need an entire economic lecture. This is similar to the time when the first PDAs appeared, they came with a 347-page instruction book in the box. The same is happening with cryptocurrencies.
But soon the crypto will become the “new iPhone”, in the sense that it will become just as simple and easy to use. All processes will occur from a pair of movements.
S.: How many years do we need for everything to happen quickly?
I.: I think not too many. Maybe in the next five years everything will be resolved. For example, Dash is currently working on “Evolution” – an application that allows you to make the user interface simple and intuitive (like any banking application on a smartphone).
By the way, in terms of clarity and usability, not a single existing crypto project has yet advanced. Until recently, the entire market has suffered from “scaling”. And there was not enough bandwidth (for example, bitcoin had a maximum of three transactions for ALL USERS per second – this is catastrophically low). To date, almost all top cryptocurrencies have created and implemented their own scaling solutions. So such an issue is gone. Two other areas are remaining more problematic: smart contracts and usability. Some projects consider the former thing important, others – the latter. We in Dash are rooting for the second, that is, for the user!
S.: Going back to the features of Dash compared to other cryptocurrencies. Once again, how are you better than those who care about smart contracts?
I.: There are thousands of different crypto projects on the market. There are several currencies that are pursuing smart contracts. Some other crypto projects are trying to enter the market and establish themselves without any clear ideology. There are always some strange, weird projects that are doing something like saving forests through crypto mining. And they never actually explain to anyone how exactly the forests are being saved. In fact, this is how Dash is different. Our strategy is simple and clear: we want to become everyday money for a range of users as wide as possible!
As to the value… What is the value, by the way?
All of these features are of great interest to some people (and some types of businesses). For them, cryptocurrencies themselves are valuable (due to various circumstances, they simply cannot do without it). This is especially popular in countries where the national currency is losing value or inflation is too high, and banking services are expensive and inaccessible.
S.: Do I understand it correctly that so far all these features of cryptocurrencies are used only by certain types of businesses (which have something to hide or are not ready to share taxes with the state) and investors who want to invest in some high-tech startup in anticipation of future dividends? Is it better for a layman like me to stay out?
I.: Cryptocurrency should be used only where it is really needed. As to common people, many of them simply make profit on course fluctuations of different cryptocurrencies or choose some smart crypto project for themselves and carefully invest money in it in anticipation of long-term growth. In the meantime, cryptocurrencies play a big role in the gray and black markets. I do not know companies in emerging markets that would not optimize taxes in a gray way or did not conduct some gray operations. For them, cryptocurrency turned out to be a convenient tool.
S.: Could you be a bit more precise?
I.: Well, for example, Russia. What is flourishing in Russia? Corruption. And what could be better than cryptocurrencies for organizing corruption schemes? You can receive money in cash, and give a rollback in crypto: they will not be able to prove or catch for such an operation.
Another way to use crypto in the modern world is to pay freelancers for their work. It is often difficult to transfer money abroad and receive payment from abroad too. You need to report about PayPal activity, which means you need to register the company, pay taxes and commissions. With crypto, paying off to freelancers is simple and quick. The next is transferring money abroad. Many earn more than they declare to the state. However, when transferring money abroad, difficulties can arise. The crypt comes to the rescue: HERE you convert to a cryptocurrency, and THERE – from a cryptocurrency to dollars.That is it, the money are teleported! And for the tax and financial monitoring, it’s as if they never existed.
There are also “gray” transactions, when partners agree on something, but do not want to enter into formal agreements (it is often easier to pay with cryptocurrency). People buy real estate overseas using crypto and without paying tax. In fact, there are too many mechanisms for using the crypto – you can’t remember everything. In some areas, cryptocurrencies have dramatically changed lives – and not only due to exchange rate fluctuations, but also due to their unique properties, which have no analogues in the financial world yet. But in no way am I promoting illegal activities…
About pensions and mortgages in crypto
S.: Let’s dream up. When the use of crypto becomes an everyday and habitual thing, how will our lives change?
I.: Payments will be easier to hide. The state will be forced to reckon with people and collect taxes in a more voluntary manner. The pressure on business and personal rights of citizens will be reduced. They will have to come up with and offer the population more partnerships. In civilized countries, where everything is alright with ordinary money, this is not so relevant. But somewhere like Caracas in Venezuela, more than five hundred ordinary shops and restaurants accept Dash already.
S.: Mortgage in crypto. Is it possible?
I .: Well, in general, it is better to take loans in what is getting cheaper, not more expensive. And since I believe in the potential of cryptocurrencies, I don’t see the point in crypto mortgages, because the amount of loan obligations will increase over time.
One way or another, everything is possible: pensions, loans, and all types of insurance. But the main meaning and value of cryptocurrency is not to provide all this to people, but to improve their lives. Now in many countries people are suffering from repressive laws, exorbitant taxation and corruption. Cryptocurrency complicates the pressure from the authorities, makes people more secure and less dependent. It is difficult to withdraw and somehow control, it does not depend on local politics. Cryptocurrency helps civil society around the world to assert their rights. That is the main advantage, in my opinion!
S.: Is it true that you can create your own cryptocurrency?
I.: Well, yes. There is a well-known website coinmarketcap.com. According to it, it’s even easy. In general, people evaluate such an idea positively, and thousands of crypto projects appear. But it is obvious that 99 percent of all this is complete nonsense, nothing more than an attempt to make money on hype. In general, a more or less experienced programmer can quite easily make a cryptocurrency based on existing mechanisms.
S.: Why don’t you create your own?
I.: Because even if I had some ideas and understanding why I should do all this, I would need a strong technical team. Programmers capable of working with the blockchain are now in a terrible deficit. And they have exorbitant salaries. And they’re all overwhelmed with offers.
S.: Is it still possible to mine crypto?
I.: For ordinary people, the ship has sailed with the mining of ether on graphics cards. Now only the industrial approach is relevant.
S.: What is an industrial approach?
I.: Industrial is like…
These are huge hangars littered with professional equipment. It is advisable to connect all this to renewable energy sources and allocate a serious Internet channel (as in a data center). Otherwise, it will hardly be profitable.
S: I don’t have any more questions. You could ask me a question for a change, Perhaps?
I.: No, I’m not in the mood. I’m only in “reply” mode.
Although… I’m wondering how bad things have to get for you to pay attention to cryptocurrency? How much should VAT be raised, how much should the dollar go up, how much more should prices rise, so that it becomes not too lazy to figure out how to stop being dependent on all this?